a lot of things going on in that place. that's it for this "special report." fair, balanced, keeping you informed and unafraid. captions by closed captioning services >> shepard: breaking news and a sudden shift? washington of the new turn happening now. at one point we expected a vote on raising the country's debt limit. but, well, can we look at that? apparently not. the house is in recess just after some house members went to the chapel to pray. maybe we all should. tonight, why this crisis created by congress matters so much to each of us. it's t. could effect our car loan, mortgages, cash tore college, even our credit card payments because in our government defaults on its loan, we'll all pay the price. >> it would likely throw the whole economy into another recession.

tonight, waiting for word from washington. prosecutors say this man sexually assaulted girls as young as 12. he says he was just practicing his religion and today in court, the polygamist cult leader warren jeffs took drastic action to defend himself. plus, was this soldier plotting another attack on fort hood? tonight how cops found him and wait until you hear what they found in his motel room. >> shepard: breaking news now dramatic turn of events over standoff raising the debt limit. all day we have been waiting on speaker of the house john boehner's bill. as debate was wrapping up a few hours ago the speaker delayed the vote and moved on to the important business of renaming a post office in peoria. i'm serious. with five days to go until all

americans could pay the price for the d.c. dead lock but at least peoria has a name for the post office. another live look in our live feed from the house floor, which is now in the outside with that slate. where out producers tell us they have run out of other bills to bring up for a vote. earlier, speaker boehner was personally meeting with the republican lawmakers. apparently to rally support for his plan. there are no gimmicks no, smoke screens. cuts government spending by a larger amount than the increase in the debt ceiling. >> so that's the majority leader. but the minority leader nancy pelosi says she is confident not a single democrat will vote for speaker boehner's bill. she says it will kill jobs and medicare appeared in dramatic fashion, she washed the stakes in the financial standoff are astronomical saying, and i quote, what we are trying to do what we are trying to do is save the world from the republican

budget. we are trying to save life on this planet as we know it today. team fox coverage. henry, white house, new details about a possible plan c. shibani joshi on what this means to americans first. mike emanuel on capitol hill. what do we know about vote delay? we hear some republicans are heading to the chapel to pray for wisdom. >> that's right, shep. the south carolina delegates has gone to the chapel. tim scott a republican from south carolina says he has received divine wisdom he is still a. no but he is praying for our company wisdom. country desperately needs it meanwhile you mentioned the whipping operation if you will. key leadership folks, speaker boehner, majority leader eric cantor pulling in no republicans, undecided americans and do the last minute arm twisting to get to the 216 votes necessary to pass the boehner debt plan out of the house, shep? >> rarely in this business have i seen something played as so

important that we will do absolutely nothing because if this does pass the house. it will not pass the senate -- >> senator harry reid has the option if it does get to the united states. essentially calling up a procedural vote that will show to the house of representatives that this is not going to pass the united states senate. then they move on to plan b or perhaps plan c: bottom line new york democrat chuck schumer said this is all a waste of time. take a listen. >> throwing a hot potato over to us that won't pass just delays things a day. we are simply four days away from one of the worst worst financial catastrophes that could face this country. >> tonight, all eyes are on the capitol and across washington are really on the house of representatives. to see if the boehner plan has the votes. if it comes up for a vote, we have been told by republican

aides that they are going to bring it up for a vote tonight. but you better believe it's not going to come up for a vote until they are pretty sure they have got those 216 votes. >> shepard: if they had had them they would have done it already. >> mike. the white house didn't actually use the word grinch today but the white house did say speaker boehner's bill could riewfn christmas by forcing us to go through this three ring circus again during the holidays. >> in the most important economic season in the country, and at a time when people don't want to worry about whether or not their are interest rates are going to group, mortgage payments and car payments and student loan bills, and their credit card payments, especially as they are buying gifts for the holidays, if we care about the economy, how could that possibly be the answer. >> shepard: what is the answer if senate democrats make good on threat speaker boehner's bill. one line sentence increasing the debt. but, wow. chief white house correspondent ed henry is there now. you are hearing a new plan in the works that you mentioned

first today on "studio b." a plan c. >> that's right, shep. basically, if the reid and boehner plans end up going down as many people in both parties believe they will over the next couple of days, there could be what you call a plan c, where you try to merge the two together. because you know senior democratic officials say they think there is not really that big of a difference on some of the key elements here if you look at the reid and boehner plans spending cuts. not too far off. special committees of congress come back and take a second bite of the apple. more spending cuts. few tax changes down the road. third point is the most critical. here is what we are told president obama is working the phones on talking to members of both parties what kind of trigger or enforcement mechanism would you have if this special committee of congress comes back in a few months and doesn't do anything, just another washington commission that talks a lot and doesn't take any action? could you force sharp tax increases? could you force sharp entitlement cuts? have some enforcement mechanisms

to show this group would finally have some teeth. not just some more washington blather. shep. >>. if you don't, you go to delay and maybe you pray. so i guess we are there. >> and divine intervention is what you they are looking for on the hill. can i tell you here inside the white house when you talk to senior aides. they are kind of sort of laughing a little bit under their breath, if you will. they are trying not to do that publicly, but they are looking at what speaker boehner is doing. he said he wanted this time to try to pass this bill. now is he struggling to get it through. normally the speaker of the house has so much power. whether it's a speaker that's a democrat or republican. they can force through almost anything. they are not going to comment just yet. they want to see whether or not speaker boehner can get this through. they're kind of enjoying the fact that republicans are struggling right now. on the other hand, they also realize there is serious business that needs to be done. at some point after all of this plays out on the hill, they want both sides to finally work out a compromise, shep.

>> shepard: victory for the day is the post office in peoria has a name. we have to live for that at the moment. >> finally. >> shepard: ed henry at the white house. as lawmakers continue to bicker or whatever they do the stock market continues to slide and so too does the value of 401(k) and other assets, the dow jones industrial average off for the fifth straight day off 62 today. the s&p down for the fourth straight day. the nasdaq posted a 1 point game. with us from fox business shibani. if -- what does this mean for us. >> it is something we need to care about. we have to say that the likelihood of this happening is very remote. because we can't rule it out, we have to talk about it credit sweeps one of the biggest banking giants on the globe predicts if we do see a default we will see a doomsday scenario where we see the stock market plunge more than 30% in a six month period. that means your pension, your retirement funds are also going to go down right along with it

already seeing a lot of uneasiness in the stock market, shep, as you mentioned. the dow has fallen the last five days, down more than 480 points. >> shepard: of course, our sources indicate and i know yours as well, that s&p, standard and poor's and moody's who do the rating don't like either of these bills because they don't cut enough. so chances are. the credit ralgt is going to be slashed no matter what happens now. >> you are absolutely right. the experts out there are predicting right now the probability is 50% that we're going to see some sort of downgrade on our pristine debt rating if and when that does happen, expect a swift and immediate reaction. you are not going to be able to go grab a cup of coffee before we see any move in the market. expect a drop in stocks. expect a drop in bonds. on the flip side. we're going to see interest rates rise. that means everything from the cost of your mortgage to maybe even your credit card bills could go up. also, going up, the price of oil as well as gold. basically the value of the

portfolio is going to do down but the cost for you live in your house or car going to go up. either scenario. >> shepard: shibani joshi, thank you. lawmakers in the house still trying to bide some time to round up the votes on the boehner debt limit bill. we are keeping extremely close eye on the capitol. bring you breaks news when it happens. united states soldier, this man, has confessed to plotting an attack on troops at fort hood. it looks like he was well on his way to making it happen. in fact, the cops say it was imminent. we will see what police found in his motel room. find out how a store clerk helped break up the plot and prevent the murder of american heros. that's just ahead from the journalists of fox news. >> on this thursday fox report. turn left.

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lifelock. relentlessly protecting your identity. shim shep continuing coverage now as we wait for the house to vote on the debt limit.

speaker boehner delayed the vote presumably because he didn't have the votes. the house is in recess as you see from the live feed being sent to us from the government. we are hearing a vote would still come tonight the moment it happens we will bring it to you live from capitol hill on "the fox report." first army officials indicate a soldier now in custody is admitting that he was planning to attack military personnel at fort hood in texas. investigators say it looks to them like he had the tools to make it happen including the guns and bomb ingredients. in fact, he may very well have succeeded had it been for a former police officer. this former cops works as a clerk at a gun store. the same gun store where major nidal hasan bought the weapons before he is accused of going on his shooting spree at fort hood in 2009. and this retired officer says he alerted investigators after the soldier bought a shotgun, i should say bought shotgun ammunition, a handgun clip. and smokeless gunpowder.

he says he got suspicious when the soldier asked what's smokeless gunpowder? >> i think that was the first red flag was the question about the powder. i mean, if you don't know what it is, why are you buying so much? >> shepard: investigators say it turns out the soldier was awol from fort campbell in kentucky. bought a downform with a fort hood patch on it when they got to his motel room they found all the markings of a taste attack. jennifer griffin tracking late breaking developments at the pentagon. tell us what they found in his room, jennifer. >> authorities tell us that they found 18 pounds of sugar, a pressure cooker. a trigger, as well as that smokeless gunpowder that you mentioned. he had enough bomb-making material, i'm told, to make at least two bombs. he was, quote, already to go according to one law enforcement source. the bomb making materials and methodology were straight out of inspire magazine and explosives

course manual according to one counter terrorism source. >> we would probably be here today giving you a different briefing had he not been stopped. is he a very dangerous individual he is where he needs to be. >> the target was a restaurant outside of fort hood frequented by fort hood personnel. it was supposed to be, according to law enforcement sources, a bomb and a shooting attack again, against military personnel that we have just learned just a few moments ago. >> shepard: acting alone? is that the thinking? or with others? what do they say? >> right now police sources are saying that they are assuming that he was acting alone. they have no evidence that he was acting in concert with anybody else. there is no threat, they say, no further threat at this time to any of the members of the fort hood community. but we did receive late today the facebook page of private abdo. it has since been taken off the

internet. he is talking about traveling to new york for a protest in favor of private first class bradley manning. of course, it was the wikileaks source. he was involved in a lot of anti-army activity according to his own facebook page, shep. >> shepard: jennifer griffin live at the pentagon. chris christie moments ago left a new jersey hospital after he underwent tests for breathing trouble related, is indicated to us, to his asthma. but the government says that after some tests he is feeling very well it happened while governor christie was at a central new jersey farm where he was scheduled to sign some open space legislation and a little while ago the governor described what happened next. >> i took the rescue inhaler that i have. didn't have the effect it normally has, but i started to feel light headed, and spoke to the troopers and said i wasn't feeling well, apparently didn't look all that well. we both decided that we should

get me some place quickly. >> shepard: many have been pushing governor christie to run for president next year but he says he won't. a strange new twist today in the sexual assault trial of the polygamous cult leader warren jeffs. he has a new legal strategy. we will detail that next. plus, a riot on the streets of hollywood, california. why 2,000 movie goers fought with police. and continuing coverage of the disaster that's brewing in washington and what the debt debate means for each and every one of us. as house republicans suddenly delay tonight's debt limit vote. breaking news as it happens on fox report tonight. mine was earned over the south pacific in 1943. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. autonsurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal.

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>> shepard: following the action on capitol hill or for the time being, the lack thereof. a house vote on the debt limit is ahead. sometime tonight it's our understanding the moment

something happens we will bring it to you. right now it looks like throughout the night they can lose 24 republican votes and still pass this thing and apparently they don't have that many or they would have passed this thing. >> the polygamist cult leader warren jeffs is now representing himself in his sexual assault trial. because he fired his high powered legal team. the cult leader is the leader of the fundamentalist church of jesus christ of latter day saints. he once graced the fbi's most wanted list alongside usama bin laden after a woman claimed jeffs forced her to marry and have sex with her 19-year-old cousin when she was a 14-year-old child. now he can face life in prison if convicted on these charges that he sexually assaulted two underaged girls. trace gallagher with the news in our news hub this afternoon opening statements i guess today. what went down? >> >> on the part of warren jeffs, shep, it was dead silence. he did not say a word in court. he just sat there at the defense

table staring down. so the judge allowed the prosecutors to begin calling their first witnesses and still jeffs remained silent. even though he is representing himself, his lawyers are still in court watching in case they are needed. during a break they finally pulled him aside and told him that silence in this case when you are your own lawyer is a very bad strategy, shep. >> shepard: trace, what did the prosecution have to say through this? >> well, the prosecution's opening statements lasted about 35 minutes and they stunned the courtroom when they said they would during this trial play an audiotape of warren jeffs allegedly assaulting a 12-year-old girl. but the woman who filed the first charges against warren jeffs says that it was commonplace for him to marry children. listen to her. >> for warren to choose a 12-year-old girl or even a young bride, it was actually considered a gift to that girl. and the people wouldn't just be

okay with it they would be delighted for him to choose their daughter. >> court, by the way, ended about 45 minutes ago, shep. the prosecution still questioning the first witness and still warren jeffs remained silent, shep? >> shepard: trace gallagher, thank you. a film from here in hollywood descended into chaos after fire inspectors shut it down because of overcrowding. cops in riot gear squared off against a reported crowd of 2,000 people who turned out for a documentary about a music festival called the electric daisy carnival raid. we're told rioters threw bottles in front of the famous mans chinese theater. cops responded by firing beaten bags. some in the crowd say officers went too far. >> i got shot in the arm and she got shot in the head. it didn't hurt as bad as i thought it was. >> i'm not going to let them tell me where to do and where to go and where i can stand and not stand.

>> shepard: obviously not. the crowd refused to disperse and arrested two people for felony vandalism. showdown through raising the nation's debt limit. live look on capitol hill where republicans are delaying a vote. usually you don't delay it if you can pass it. they probably can't pass it national journal reports they can lose 24 republicans because no democrats are with them. right now according to the reporting of the national journal, 23 nos, three leaning nos and seven undecided. what do you think? there are deals being made and if they can do it, we will get a vote on this thing, which means nothing. because it's going to fail in the senate anyway according to senate leaders. so what about this plan c on which our ed henry reported earlier? what does it mean? team fox coverage from the white house. capitol hill, top story at the bottom of the hour and coming up. >> there is no reason for them to say no. it's time for somebody in this town to say yes. let's pass this bill and end this crisis. >> this idea that we have a short-term debt limit five, six

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long evening of armed twisting ahead of him. ed henry live at the white house. mike emanuel live on capitol hill. mike, according to the reporting of the national journal, there are 22 nos right now, there are three leaning nos. there are seven undecides. they can only lose 24. there is a lot of this going on. who is being twisted, do we know? >> too close to call. absolutely right, shep. so, bottom line is a lot of those mexico have been inside congressman kevin mccarthy the republican whip's office for the arm twisting sessions. it's been a variety of people. there has been a lot of tea party people who do not believe, obviously in raising the debt ceiling at this point. a lot of other republicans one saying moments ago the choice of a bad bill the boehner bill or a really bad bill in senator reid's bill and so that representative says is he still a. no so, at this point they have run out of other business to do here on capitol hill on the house of representatives' side. so, they are in recess until

they get the votes to move forward, shep. >> shepard: mike, this is starting to feel like a big night for speaker boehner. he has lost a lot of bills that he has brought before the house since he got this job. it has not gone well for him. if he doesn't get this thing through tonight, is he in trouble? >> well, it makes you wonder because it is a big night for him. look, his name attached to the bill. the question is whether he can get the republican votes to make it happen. and, so, if he loses a significant number of votes, they will see that as a sign of weakness here on capitol hill. and so the question is where do you go from here? republican leadership is doing everything possible to make it happen in terms of getting the bill to the floor, to get it to pass with 216 votes. but, there are a lot of questions about who the big winners and hot big losers could be. based on how this plays out in the hours ahead. one person having a hard time

getting done what he said he would do is the united states. plan crmpleted is for this to come up again around christmas. >> yeah, maybe it might be counter intuitive to say amid all this chaos optimism in washington. get a deal in the next couple of days. they are starting to talk democratic officials are in private about what might be called a plan c. the boehner bill, the reid bill, they say these two are not that far apart on in terms of spending cuts. and in terms of the fact that both of them want to set up special committees in congress to come up with another round of spending cuts down the road. over the long haul. and they say the big sticking point what are the enforcement mechanisms. how do you make sure this committee on congress comes together. not some other washington commission that does a study, puts it on a shelf somewhere where it collects dust. how does it have some teeth to it working on that behind the scenes. we're told the president is getting some positive signs from senate republicans who might be warm to such a compromise.

but house republicans would not be. so if it were able to get through the senate, a compromise like, this you would still have to bring it back to speaker boehner where not a lot of conservatives would get on board. a lot of democratic votes. every time you switch, move this, there is another problem. it's like an old suit in the closet you pull on the string. next thing you know it's torn apart. >> shepard: ed henry at the white house. mike emanuel on capitol hill. back to our journalists as news warrants. u.s. government end out 200 million checks last month to people across our nation. even if washington runs out of money to pay those checks, banks generally still have to pay them. if the government defaults it could leave some lenders out of luck. and that's caused moves today, shannon bream with that live in washington. hey, shannon. >> hi, shepard, well at the white house briefing press secretary jay carney pointed out that payments go everywhere from the very biggest government contractors over to day americans. all of them expect those to come on time as promised. take a look at how it played out in the month of june. the government sent out more

than 211 million checks or electronic payments. so where are they all going? take a look. medicare comes out at the touch the list. that accounted for 100 million checks. 7 #e million of those went to doctors, the rest to other providers like hospitals and labs. second on the list, the one everyone is talking about. more than 56 million social security payments went out in june. also in the top 5, important to note are military. more than six payment checks to active duty and retired defense personnel. urban worries that the shear number of all these payments going out has actually dulled lawmakers in washington to the reality exactly what the government is spending. >> i don't believe that there really is a realization that this is really real money. one of the basic prerequisites of the government is a payment from the government. there is no stop payment capability. there is not like a commercial check that can be stopped. >> that's right.

faunce says most americans don't know when the government issue as check good as cash. if you take it to the bank they have to give you money for it. even if they have any doubts whether the government could actually cover it and reimburse the bank, shep? >> shepard: shannon bream in washington. members of one nation's coast guard rescued sailors from another nation off a sinking ship. top story as we go around the world in 80 seconds. china. that rescue team speeding to a coal carrier off the southern coast. the chinese coast guard crew saving seven vietnamese sailors and calling for help to transfer valuables from the boat. russia, fast-spreading wildfires now raging in some eastern regions after a heat wave hit much of the country, flames ripping through forests and chars wheat crops. a similar wave of wildfires last year killed dozens of people and

burned thousands of homes. new zealand, two gold fish now unofficially the hardiest survivors of the devastating earthquake in christ church last february. we're told these little guys survived 134 days trapped in their tank in the city's off limits downtown. here is their owner. >> i didn't even want to look in the direction of the fish tank, and wonderful the safety personnel with us and he said hey, the fish are alive. they are swimming around. >> shepard: there had been six fish in that tank so the survivors likely munched on their companions. gold fish are omnivores after all. australia, road workers corralling a crocodile with brooms. we're told it came out of a drain they were cleaning, the crew managed to keep the reptile at bay until a professional arrived. and that's a wrap on this fox trip around the world in 80 seconds. >>

in washington staring down a deadline debt deal or economic disaster. house leaders have delayed tonight's vote most likely because they don't have tonight's vote. we will get a live update coming up to see whose arm has been twisted. plus the hotel housekeeper who accused a powerful financial leader and a one time frontrunner for the french presidency of sexual assault is fighting back together against questions about her own credibility. wait until you hear what she had to say straight ahead on fox report. turn left.

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>> big vote ahead on capitol hill tonight. republican house speaker john boehner looking to shore up votes ahead on the vote to raising the debt limit. correspondents telling us too close to call. actually, if they would have had it, they would have voted. updates as we get them. the hotel maid who is acould you seeing the financial super star and one time frontrunner for the french presidency, dominic

strauss-khan of sexual assault holding a news conference today and telling about her struggles. >> we cry every day. we can't sleep. me and my family [inaudible] what happened to me, i don't want that to happen to any other woman. because this is just too much for me. it's too much for me and my daughter. >> >> shepard: she also claims the bad things said about her is not true. the accuser's case against the former imf chief looking shaky when prosecutors said they found inconsistencies in her statement and dominique strauss-khan's lawyers want that case dropped. the chief fox report correspondent jonathan hunt in new york tonight. she has been very outspoken in recent days talking to everybody and now publicly. >> yeah, shep. though she didn't take any

questions today. she spoke for a few minutes there. repeatedly talking about how tough this has all been for her and how she has been totally dependent on her daughter to keep her going through this ordeal. listen. one day my daughter told me, she said mom, promise me you stop crying. will people call you bad names. people tell bad things about you. because they don't know you you have to remember this guy is a powerful man everybody knows that. >> it is highly unusual for an alleged victim to speak publicly before any trial takes place, shep, and dominic strauss-khan's lawyers say in doing this she simply trying to put pressure on prosecutors to push ahead with this case, shep? >> shepard: word was she spent eight hours with prosecutors yesterday and apparently they

listened to audiotapes in that meeting, huh? >> shepard: yeah, these are were tapes she had on the phone with a friend of hers in the days after the alleged assault took place prosecutors are concerned because in the conversations diallo says is he a very wealthy man. i know what i'm doing. she says those conversations have been mistranslated they took place in her native dialect. the ada's office is -- d.a.'s office is saying nothing publicly about the case but i spoke to a source in the d.a.'s office today. that source told me there is still, quote, a great deal of concern but no decision has yet been made on whether they are going to go ahead with this prosecution, shep. >> jonathan hunt in new york city. jonathan, thank you. the rise of freedom now. our television cameras have been following the rebuilding of the world trade center site for many months. we're seeing astounding progress. especially at the future 9/11

memorial and museum. organizers using items to help tell the story of 9/11. the arrived this week a cross that a construction worker discovered standing among the wreckage of the twin towers. ♪ ♪ >> shepard: it was found in the twisted steel and rubble of the world trade center. many working on the pile. first searching for survivors and then for victims. say they found peace in its existence. in october of 2001, it was blessed by father brian jordan. >> many heros still live here and shall continue to work here god with be us forever and ever amen. >> one of the questions that was asked that day is where is god

in the midst of all this horror and atrocity. i think for the people who saw that cross, it wasn't that god was in the cross but it was a center of presence of god in the midst of that strategy and the presence of god was all those people who gave of themselves in heroic action, trying to rescue people that day and also in the days, weeks bs and months afterwards. >> in october of '06 the cross was moved, but rather than end up in storage, it was placed outside st. peters church, just a block from the world trade center. >> it was a great honorable. it's been a real place for tourists to come visit the 9/11 site to stop here and lay flowers or lay wreaths and say a prayer. it's been a religious focus for the many people of all different faiths. >> shepard: just days ago the cross was blessed again. and then lowered into its permanent home the national 9/11 museum which will open next year. madigan has been he witnessed

lower manhattan's change in an instant. now he is seeing it change again. >> out of this whole strategy there has been a resurgence this neighborhood is thriving now that there are young families moving in here and become a place of life and renewal. >> shepard: a group of atheists is suing to keep that cross from staying at the museum. they claim it's an unconstitutional mingling of church and state. the 9/11 memorial organizers say the cross is a symbol of hope and longs there. we have another story about the rise of freedom each next week and each week on "the fox report." see the entire series on our web site foxnews.com slash freedom. as we wait to see whether washington will raise the debt ceiling or let the nation default, we are keeping our eye on capitol hill. a live look now as the house leaders have delayed tonight's vote on speaker boehner's debt bill. how long? i don't know. hoping to find out shortly. we will let you know coming up. ] this...is the network. a living, breathing intelligence that's helpi drive the future of business.

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>> waiting to see if lawmakers on capitol hill will vote on the debt plan to keep the u.s. government out of default. which it won't. even if they vote yes. after an earlier day delay they suggested that the shows speaker john boehner didn't have enough support to pass the bill. remember, he has been facing a lot of resistance from conservatives and tea party members gotten within the g.o.p. with us is john bussey the assistant managing editor at the "wall street journal." owned by the parent company of this network for context and progressive. john boehner. >> yeah. >> shepard: he has had a horrible go of it. >> yeah. >> shepard: everything, not everything got new post office names but other bills that he has brought up have gone down in flames much to his dismay. it isn't working well, is it? >> even the delay is difficult for him. the prestige of the speaker's position. mind you, they also in this perverse way that washington works. it could back fire a bit on the democrats as well.

you want to have somebody running the republican caucus of the house that has that operation there under control. because whatever compromise bill that comes out of this is going to have to go to the house and senate. you want him to be able and the whip to make sure that they have the votes to get that through. >> shepard: broken at the moment. if we do default or if our credit rating is lowered, which could happen either way. >> yeah. >> shepard: chances are interest rates go l. go up. talk about a half point interest rate. what would happen? >> david whistle, my colleague has a very. >> that that's on wsj.com. >> in today's journal. interesting, people are not entirely sure what will happen rates will go up on treasuries. bank rates, mortgage rates will go up as well. if they went up a half a percentage point, which is a lot it could add 425 or so billion

dollars to the deficit over the next 10 years or a little bit more. or it might not. in the case of japan. their credit rating went down from a.a.a. to double a. and the interest rates were not hugely affected. >> shepard: one of the differences a lot of cash on hand. a lot of debt on hand. >> a lot of savings on hand. very slow economy over the last 10 years. so, we're not really sure which way this ball is going to bounce. the presumption is it's not good. it will raise interest rates and as a result of that, business will have to pay more to borrow, to expand. they are not going to be inclined to expand and that's going to hurt job growth. >> shepard: somebody along the way must have made a misdal could miscalculation. both sides thinking we won't get to this point because nobody wanted us to bring it to this point but as it turns out they don't have the votes. i mean, who thought two weeks ago that wall street didn't, that we might actually face a default on the part of our government for the first time

ever? >> yeah. the markets are still look to be fairly sure that's not going to happen, right? >> the stock market has bounced around a couple hundred points. >> shepard: down 450 over the last week but i hear you. >> in the scheme of things it's not a huge drop. 2008 got that kind of move. >> shepard: sure. >> the market seems to be fairly sure that you are still not going to have a default. at the end of the day, this is an enormous ideological battle that's going on in washington. the public may not like it. the public may be wondering, you know, we hire and we pay these people through elections. we hire them to manage the economy and manage the country for us and they are not doing a very good job of it. may not like that. you are seeing playing out enormous ideological battle in washington over what's going to be cut. how the social compact with the american public is going to be changed. and whether or not we're going to have to raise taxes to do so. that takes an enormous amount of energy and you have seen within the republican party so many splits just within that party

that have absorbed those weeks that you talked about. >> shepard: eric cantor promised there will be a vote tonight. john boehner is trying to get the votes together. they don't have the votes. there probably won't be a vote tonight. who knows? live continuous coverage here on fox news channel as we wait for the house vote on the republican plan to raise the debt ceiling. a live look at the house. the house is in recess after g.o.p. leaders delayed. we're told that vote will happen sometime tonight and that some arm twisting is going on. update next. while you are waiting. head over to foxnews.com for a complete guide to this debt vote, has put together the hitchhiker's guide that breaks down the whole process. head to our web site. click on politics, john bussey, thank you. [ thomas ] my sophomore year, i was pretty confused,

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like our hearty crab and roasted garlic seafood bake or sn crab and crab butter shrimp. [ jon i wouldn'tut it my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea fd differently. how'd you learn to do that? what'd you use? every project we finish comes with a story built-in. it's how our rough ideas become "you did that yourself?" so when we can save more on the projects that let us fix, make, and do more... that just makes the stories even better. more saving. more doing. that's the power of the home depot. add some style to your sink, with this moen banbury faucet for the new lower price of 79 bucks. >> shepard: following breaking news and the debt limit showdown another look on capitol hill. republican leaders insisting a vote on speaker boehner's bill will happen tonight. as you can see right now nothing is happening tonight. both chambers in recess, at least that's what they will let

us watch. the vote was supposed to be done by now. in fact, the senate was supposed to be voting on the house bill at this moment. but, as you can see, nothing happening there either. that majority leader harry reid in the senate says they are in recess until at least 9:00 eastern time. he is promising they will defeat speaker boehner's bill when and if they get a chance to do. so even before tonight's delay, the white house is insisting speaker boehner's bill quote ain't going nowhere." democratic officials are telling fox news they are working on plan c, which is really the real plan. it would combine parts of the house and the senate bills to try to come up with some sort of compromise. tonight some house republicans visiting capitol hill chapel to pray about it. and on this day in 1858, personal identification got a big thumbs up when the first modern recorded use of fingerprints. it happened in india. when a british magistrate began using fingerprints as a scare tactics for important documents.

the idea folks would be less likely to lie about their signatures if it came along with a print. the plan apparently worked. but it would take more than three decades for fingerprints to make the jump to criminal justice. in fact, police in argentina were the first to use fingerprints as a way to solve crimes. these days we still use prints as well as d.n.a. and eye scans and all the rest for i.d. the ink first pit hit the paper 35 years ago today. here is what is really happening. what's really happening is speaker boehner is worried because he needs to pass this bill. not that it's going to ever do anything. it won't. it won't happen in the senate. he needs to pass something. so they are twisting arms. oh to be a fly on the wall as the whip is trying to get these votes. then there is the senate. their vote will be next. it won't pass either. then a plan c comes together, it will be some sort of combination of the two plans with some con con julying and six months from now w